BAE Systems Predicts "Good Growth" After 35-Percent Jump In Profits

MILPLEX

London (AFP) Sep 07, 2005
British defence and aerospace giant BAE Systems said on Wednesday that it would deliver good growth in 2005 after posting a 35-percent rise in pre-tax profit during the first six months of the year.

BAE Systems said pre-tax profit climbed to 426 million pounds (627 million euros, 786 million dollars) in the six months to June 30, compared with 316 million during the same period in 2004, after benefiting from the British and US defence markets.

Net profit more than quadrupled to 318 million pounds from 69 million, while turnover increased by 13.6 percent to 6.773 billion pounds.

"Overall, the company is set to deliver good growth in 2005," BAE said in a statement accompanying the results.

The group posted a 20.4-percent rise in underlying pre-tax earnings to 566 million pounds, higher than analysts' consensus forecast of 507 million.

BAE Systems, which has major operations across five continents and customers in some 130 countries, saw its share price climb by 1.44 percent to 335 pence in early afternoon dealing in London. The capital's FTSE 100 index of leading shares was up 0.02 percent at 5,360.40 points.

Alongside its results, BAE Systems said that its integration of United Defense Industries, the US maker of Bradley armored personnel carriers it acquired in March for 3.97 billion dollars, was "well underway".

Chairman Dick Olver added: "We have grown the companys position in the US and refocused our business interests in Europe. In particular, the acquisition of United Defense has firmly established BAE Systems as a leading supplier of defence systems in the United States."

Olver meanwhile denied speculation that BAE was looking to sell its 20-percent stake in European aircraft maker Airbus to fund further US acquisitions.

"Right now, I'm sure (chief executive) Mike (Turner) and I would both say, 'We look at everything, including Airbus', and right now it's not for sale, because there's not a better use of that asset," the chairman was quoted as saying in Wednesday's edition of the Financial Times.

Turner meanwhile said that the company's US businesses would earn the defence giant about 8.5 billion dollars in underlying sales during 2005.

In home market Britain, BAE said it was continuing to deliver wide-ranging support activities in partnership with the Ministry of Defence.

"We are now also seeing the benefits of the work over recent years to eliminate inappropriate risk and improve returns from our major programmes business with the UK Ministry of Defence," it said.

BAE, which employs almost 100,000 people worldwide, decided in January to axe nearly 1,400 jobs at 13 sites across Britain, in part due to a declining workload. The company employs about 45,000 workers at more than 70 sites across Britain.

All rights reserved. � 2005 Agence France-Presse. Sections of the information displayed on this page (dispatches, photographs, logos) are protected by intellectual property rights owned by Agence France-Presse. As a consequence, you may not copy, reproduce, modify, transmit, publish, display or in any way commercially exploit any of the content of this section without the prior written consent of Agence France-Presse.

MILPLEX

Asia Overtakes Middle East As Developing World's Top Arms Market: Report

Washington (AFP) Sep 01, 2005
Asia has overtaken the Middle East as the largest arms market in the developing world, with India and China locked in a gruelling race to purchase weapons from Russia, according to a report sent to the US Congress this week.

The content herein, unless otherwise known to be public domain, are Copyright 1995-2016 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement All images and articles appearing on Space Media Network have been edited or digitally altered in some way. Any requests to remove copyright material will be acted upon in a timely and appropriate manner. Any attempt to extort money from Space Media Network will be ignored and reported to Australian Law Enforcement Agencies as a potential case of financial fraud involving the use of a telephonic carriage device or postal service.